ID :
40511
Wed, 01/14/2009 - 10:42
Auther :
Shortlink :
http://m.oananews.org//node/40511
The shortlink copeid
Farm minister calls for early spin-off of Nonghyup financial arm
SEOUL, Jan. 13 (Yonhap) -- The financial arm of South Korea's agricultural
cooperative must spin off as soon as possible to better meet the needs of local
farmers, a senior policymaker said Tuesday.
Agriculture Minister Chang Tae-pyong told Yonhap News Agency there is a need to
speed up the reorganization process at the National Agricultural Cooperative
Federation, commonly called Nonghyup.
"There have been many changes since the original reform blueprint was announced
in 2007," the official said. He said that instead of waiting until 2017 as
outlined in the plan, steps should be taken as early as next year.
Under the current plan, the cooperative is to separate into financial, policy,
training and retail-wholesale sectors, the last of which is to include farm
support operations.
To operate independently and allow separation, Nonghyup's retail-wholesale
business, which has lost money in the past, needs a capital injection of 8.2
trillion won (US$5.9 billion), a move expected to require state support.
The minister said discussions are underway to write a revised schedule for the
separation of the financial affiliates, with the proposal to be forwarded to
parliament in October.
Separation has been advised as Nonghyup has been attacked for neglecting its main
business of helping farmers and concentrating instead on its banking and other
financial businesses, which generate profits. The financial arm's total savings
and assets are valued at 200 trillion won.
If the cooperative is split, the central policy body will coordinate wide-ranging
training and support programs for farmers, while the retail and wholesale sectors
are to distribute and sell the produce they raise. In addition, the financial arm
is expected to be in a better position to increase earnings and become a
comprehensive financial service provider.
Chang, in addition, said that before the financial business is spun off, actions
must be taken to engage in large-scale restructuring to enhance competitiveness
and reduce waste.
yonngong@yna.co.kr
(END)
cooperative must spin off as soon as possible to better meet the needs of local
farmers, a senior policymaker said Tuesday.
Agriculture Minister Chang Tae-pyong told Yonhap News Agency there is a need to
speed up the reorganization process at the National Agricultural Cooperative
Federation, commonly called Nonghyup.
"There have been many changes since the original reform blueprint was announced
in 2007," the official said. He said that instead of waiting until 2017 as
outlined in the plan, steps should be taken as early as next year.
Under the current plan, the cooperative is to separate into financial, policy,
training and retail-wholesale sectors, the last of which is to include farm
support operations.
To operate independently and allow separation, Nonghyup's retail-wholesale
business, which has lost money in the past, needs a capital injection of 8.2
trillion won (US$5.9 billion), a move expected to require state support.
The minister said discussions are underway to write a revised schedule for the
separation of the financial affiliates, with the proposal to be forwarded to
parliament in October.
Separation has been advised as Nonghyup has been attacked for neglecting its main
business of helping farmers and concentrating instead on its banking and other
financial businesses, which generate profits. The financial arm's total savings
and assets are valued at 200 trillion won.
If the cooperative is split, the central policy body will coordinate wide-ranging
training and support programs for farmers, while the retail and wholesale sectors
are to distribute and sell the produce they raise. In addition, the financial arm
is expected to be in a better position to increase earnings and become a
comprehensive financial service provider.
Chang, in addition, said that before the financial business is spun off, actions
must be taken to engage in large-scale restructuring to enhance competitiveness
and reduce waste.
yonngong@yna.co.kr
(END)
